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It is not quite good riddance to bad rubbish and it has taken an overly long period to take action but from next January the UK Payday loan lenders will have their usurious rates of interest they charge capped at a mouth-watering 0.8% per day and limited to twice the amount originally borrowed.

The Payday loan lenders claim that this would result in more people turning to loan sharks, presumably because the payday loan lenders would lend less at these slight more affordable rates. I think the payday loan lenders are wrong; people who borrow from them are already in the hands of loan sharks.

There is something wrong with the system of credit in the United Kingdom. Not only are payday loan lenders charging very high rates of interest but store cards, credit cards and banks are all lending at rates which compare very unfavourably to the present bank rate.

This sucks capital out of the business sector and sucks money out of the consumers’ pockets directly into the pockets of the banks and the hedge funds.

There is no incentive to save money in a bank and buying stocks and shares or investing in alternative investments is incredibly risky; those waters are patrolled by the same breed of sharks that infect the water of those who want to borrow small amounts for short periods.

Our economy is set up by the imbalance between lenders, borrowers and savers (who are simply lenders in another guise) and this imbalance is what is impoverishing those who are already poor and rewarding those who are very wealthy. It is very hard for governments to control banks and lenders, as the events of the past five or six years have shown, but government is not supposed to be easy.

Ultimately the business of lending and borrowing is all about turns; if a bank pays 0.5% on deposits and lends at between 5% and 25% it is not hard to understand why our economy in the United Kingdom is actually founded upon usury rather than work.

– Growing awareness of inflation among the population
– Market volatility
– Interest rates will rise significantly
– Lack of efficiency of artificial stimulations
– Stimulations will be transferred to emerging countries
– Geopolitics will get out of hand, people will revolt.

Sixth stage:
– Gold and silver price will rise big time
– Higher popular awareness of the link between QE and inflation
– Real estate bubble burst
– Stock market massive draw back
– Bond market collapse
– lost of interest from foreign investors to currency.
– Currency value will plummet and ((( bank accounts will be seized))) in Cyprus style “Bail In”.
– Heavier taxes on Gold and Silver purchases, gold confiscation as in 30’s USA..
– Collapse of the real estate (more supply, less demand)
– Market Holyday, when it will reopen, it will be too late.